Karnataka Introduces Cess on Aggregator Platforms to Support Gig Workers

Karnataka's government will impose a new cess on transactions conducted via platforms like Zomato and Uber to support gig workers. The collected funds will contribute to a welfare fund aimed at improving social security and rights for platform-based gig workers in the state.

The Karnataka government is set to introduce a new cess on transactions made through popular aggregator platforms such as Zomato, Swiggy, Ola, and Uber. The move, announced by Karnataka Labour Minister Santosh Lad, aims to generate funds for a welfare program benefiting the state's gig workers.

Minister Lad emphasized that the cess would only apply to transportation transactions and not consumer purchases. The initiative is part of a larger legislative effort to safeguard the rights of gig workers, who often face precarious working conditions and lack traditional labor protections.

The draft bill outlines the government's plans to place obligations on these platforms concerning social security, occupational health and safety, and transparency. Central to this initiative is the creation of a welfare board and fund dedicated to platform-based gig workers.

(With inputs from agencies.)